LXi has exchanged contracts on a portfolio of 18 Sainsbury’s supermarkets for £500m.
The sale and leaseback deal equates to a 5% yield.
The REIT said the stores benefit from several defensive characteristics: “Strong trading performance, very low and sustainable indexed rents, long-term ‘green’ leases, low site coverage and modern buildings that provide omni-channel sales optionality.”
LXi said it will be discussing the possibility of an equity raise in order to part-fund the deal with potential investors. If that happens, it is expected to have an issue price set at a premium to the REIT’s estimated NAV per share as at 31 July 2022 of approximately 142p.
LXi has also announced its first post-merger interim quarterly dividend of 1.575 pence per ordinary share. The dividend will be payable on 18 November, and is in line with the REIT’s annual dividend target of 6.3p per share for the year to 31 March 2023.
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